OR prepares for oil price volatility later this year
published : 27 May 2023 at 06:32
newspaper section: Business
writer: Yuthana Praiwan
PTT Oil and Retail Business Plc (OR) is bracing for possible challenges caused by oil price fluctuations and a global economic slowdown that could affect the company in the second half of this year.
Though the company benefited from the full reopening of Thailand, it is staying alert to the prolonged Russia-Ukraine war, which was blamed for driving up global prices of oil, gas and coal last year, said Wilaiwan Kanjanakanti, OR's senior executive vice-president for finance.
OR is also monitoring the possibility that major economies will enter into recession this year, which would weaken consumer purchasing power.
"Global oil price fluctuations are calming down, but we are not complacent about the situation and are aware of risk factors that may affect our businesses," said Ms Wilaiwan.
The lower volatility of global oil prices reduces the risk of oil stock losses or gains for the company.
In the first quarter this year, OR recorded an oil stock loss worth 100 million baht.
PTT estimates the Dubai oil reference price will range from US$80-86 per barrel through to the end of 2023.
She said OR aims to maintain its marketing margin at more than one baht per litre of oil, compared with 0.7-1.3 baht per litre of oil in the first quarter.
The company plans to increase the number of petrol stations in Thailand and overseas by 100 this year, up from 2,161 as of the end of March.
Regarding campaign pledges to hike the daily minimum wage by the Move Forward Party and its coalition partners, Ms Wilaiwan said such a move would not affect OR.
She said OR does not directly base its wage decisions on the country's minimum wage rate, but declined to elaborate on the company's salary criteria.
"We can deal with higher pay for our staff," said Ms Wilaiwan.
At present, OR operates 20% of its oil and non-oil businesses, with the remaining 80% overseen by other investors.
"This is another reason that a wage rise will have little impact on OR," she said.
- oil price